Latest / The Diversity Career Podcast with Fexingo: Inclusion, Equity, and Underrepresented Professionals / How a Bank Made Caregiver Support a Career Retention Tool
Transcript
- Lucas: Luna, I want to talk about a bank — actually, let's call it a major U.S. bank, because the specific institution isn't as important as the policy itself. Luna: Okay, I'm intrigued. What's the policy? Lucas: It's a caregiver support program. And I know, that sounds like a standard HR checkbox — 'we offer flexible work and an EAP.' But this one is different. The bank offers up to twenty days of backup care per year for children or elderly relatives, plus a ten thousand dollar annual subsidy for elder care or childcare expenses. Luna: That's real money. Ten grand a year for care costs — that's not a token benefit. Lucas: Exactly. And the results are striking. The bank tracked employees who used the program versus a matched control group. Among caregivers who used the benefit, turnover dropped by thirty percent. And their promotion rate was fifteen percent higher than the control group over two years. Luna: So the people who actually used the support stayed longer and advanced faster. That's a pretty powerful correlation. Lucas: It's not just correlation, actually. The bank did a rigorous study — they controlled for job level, tenure, performance ratings, all the usual confounders. The effect held. And they calculated that every dollar spent on the program saved about one point fifty dollars in reduced hiring and training costs. Luna: So it's a net positive for the bottom line. Why don't more companies do this? Lucas: I think a lot of companies still see caregiving as a personal issue, not a business one. And there's this assumption that it mostly affects women, so it gets filed under 'gender diversity' rather than 'talent retention.' But here's the thing — the bank's data showed that men used the benefit almost as much as women. About forty-three percent of users were men. Luna: That's higher than I would have guessed. So it's not just a 'mom problem.' It's a caregiver problem that affects a huge chunk of the workforce. Lucas: Right. And when you think about the demographics — the baby boomer generation is aging, so elder care is becoming a massive issue. Meanwhile, childcare costs keep rising. The bank basically said, 'We'll cover some of that, and in return, we keep experienced people who are motivated and loyal.' Luna: It's almost like a retention bonus that you earn by staying, but it's delivered as a service rather than cash. Lucas: Exactly. And there's a career angle here that I think gets overlooked. The bank found that employees who used the program were more likely to apply for promotions. They weren't just staying — they were growing. Because the support gave them headspace to focus on their careers instead of scrambling to find backup care. Luna: That makes intuitive sense. If you're not constantly stressed about who's going to pick up your kid when they're sick, you can actually think about your next project, your next role. Lucas: And this is where it ties to diversity and inclusion. Caregiving disproportionately affects women and people of color. So a program like this can help close promotion gaps. The bank saw that promotion rates for women of color who used the benefit rose significantly compared to those who didn't. Luna: You know, I've heard an argument that these programs are too expensive for smaller companies. But the bank's study showed that even for a firm of, say, five hundred employees, the cost per person is manageable if you design it right. And the savings from reduced turnover can offset it. Lucas: Right. You don't have to offer ten thousand dollars. You could start with ten days of backup care. Or a subsidy of two thousand. The key is making it known and easy to use. The bank found that awareness was a big barrier — initially, only twelve percent of eligible employees used the program. After they started actively promoting it, usage tripled. Luna: So the communication piece is critical. If people don't know about it, it doesn't matter how good the benefit is. Lucas: And that's something companies often mess up. They launch a program with a big email, then move on. But caregivers are busy — they might not read that email until three months later when they're in crisis mode. The bank started doing quarterly reminders and manager training, so supervisors could proactively say, 'Hey, you know we have this benefit, right?' Luna: That's smart. Normalize the conversation around caregiving, so people don't feel like they're admitting a weakness by using it. Lucas: Exactly. And that destigmatization itself is a career tool. When managers bring it up, it signals that the company expects you to have a life outside work and supports you in managing it. That builds trust and loyalty. Luna: I want to go back to the promotion data for a second. Fifteen percent higher — that's a huge effect. How do they explain that? Lucas: The bank's researchers think it's a combination of reduced stress and increased bandwidth. When you're not scrambling to find care, you can take on stretch assignments, network internally, invest in skill-building. Also, the program includes access to a caregiving counselor who helps you plan — and that planning skill might carry over to career planning. Luna: So it's not just about removing a barrier, it's about actively enabling career development. Lucas: Right. And I think this is a model that could be replicated across industries. Healthcare, retail, manufacturing — any sector with a significant caregiver population. And since women and people of color are overrepresented in those sectors, it's a diversity play with a clear ROI. Luna: If today's episode was useful to you — and I hope it was — this is exactly the kind of content that keeps people coming back. And the way we keep it free and ad-free is through listener support. If you've ever gotten value from this show, you can help keep it going at buy me a coffee dot com slash fexingo. That's buy me a coffee dot com slash fexingo. Lucas: Yeah, and it honestly makes a difference. Every contribution helps us spend time digging into stories like this one. So if you're able, we appreciate it. Now, back to the bank's program — I want to talk about one more finding that really surprised me. Luna: What's that? Lucas: The bank found that employees who used the program were more likely to recommend the company as a place to work, and their engagement scores were higher across all demographics. But the biggest jump was among men over forty — who are often the group least likely to use family benefits. Luna: Interesting. So it's not just about attracting or retaining women and minorities. It's about creating a culture where everyone feels supported. Lucas: Exactly. And that's the real career lesson here. A benefit that's framed as 'diversity and inclusion' often gets siloed. But when you frame it as 'talent retention and development' — and back it with data — it becomes a core business strategy. The bank's CEO actually presents this program to investors as a competitive advantage in talent. Luna: That's a powerful narrative. Not 'we're doing good,' but 'we're doing smart business.' Lucas: Right. And I think for listeners who are in HR, diversity roles, or even managers, this is a case study you can take to your leadership. The data is compelling — and it's not from a think tank, it's from an actual company's internal analysis. Luna: So what would you say is the one takeaway from this episode? Lucas: That caregiver support is one of the highest roi investments a company can make in its workforce. It reduces turnover, boosts promotion rates, and builds a more inclusive culture. And it's scalable — you don't need to be a giant bank to start. A small program, well-communicated, can make a real difference. Luna: And for employees, it's worth seeking out companies that offer these benefits. Because they're not just perks — they're career accelerators. Lucas: Absolutely. Thanks for listening, Luna. Luna: Thanks, Lucas. See you next time.